Cerebral CEO and chief medical officer David Mou.
Cerebral
Well being insurer Aetna is canceling its in-network contract with Cerebral in August, the psychological well being startup’s CEO informed workers on Wednesday.
“We acquired discover from Aetna of its determination to terminate our supplier contract with out trigger, and discontinue protection Cerebral companies, efficient August 21, 2022,” Cerebral CEO David Mou, who beforehand served as the corporate’s chief medical officer, wrote in a message to workers. “We’re nonetheless looking for an evidence for Aetna’s determination.”
Cerebral, valued at $4.8 billion after a $300 million funding spherical led by SoftBank final yr, is being investigated by the Division of Justice round its prescribing of managed harmful substances, together with stimulants comparable to Adderall. Cofounder and CEO Kyle Robertson was ousted by the board final month and workers are bracing for a spherical of layoffs.
Cerebral was thought of in-network with Aetna in 45 states, based on a list posted on the corporate’s web site. “We’re very upset with Aetna’s determination,” Mou wrote, including that fifty% of the greater than 1,000 Aetna members recognized with critical psychological sickness confirmed “important scientific enchancment” throughout their remedy with Cerebral. He added that he hoped Aetna “will rethink its determination.”
A Cerebral spokesperson confirmed the discover of Aetna’s termination. Aetna didn’t instantly reply to a request for remark.
On Might 4, Cerebral acquired a subpoena from the U.S. Lawyer’s Workplace for the Jap District of New York associated to “attainable violations of the Managed Substances Act.” The federal regulation regulates the prescribing of medicines which have potential for abuse and dependence, together with stimulants and benzodiazepines. A Cerebral spokesperson beforehand mentioned the corporate is “persevering with to cooperate with the DOJ on this investigation.”
Aetna’s mother or father firm, CVS Well being, informed The Wall Street Journal it will cease filling prescriptions for managed harmful substances for Cerebral sufferers final month. A Cerebral spokesperson confirmed that CVS Well being, Walmart and the web pharmacy Truepill have all stopped filling these prescriptions for Cerebral sufferers.
Final week, Mou informed Cerebral workers that deliberate layoffs on the firm have been unrelated to the problems round managed harmful substance prescribing. “The corporate is in good condition,” he mentioned at an worker city corridor. “We’re in an financial downturn and so all firms essentially have to be extra conservative.”
